Cincinnati Financial Earnings: Here’s Why the Stock is Up Now

Cincinnati Financial Corp. (NASDAQ:CINF) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.02%.

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Cincinnati Financial Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 62.5% to $0.78 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Rose 11.87% to $1.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cincinnati Financial Corp. reported adjusted EPS income of $0.78 per share. By that measure, the company beat the mean analyst estimate of $0.66. It beat the average revenue estimate of $1.07 billion.

Quoting Management: Steven J. Johnston, president and chief executive officer, commented: “Consolidated operating income for the first quarter reached 78 cents per share, our best first-quarter result since 2007 on a per-share basis. Underwriting profits rose for each of our three property casualty insurance segments and our life insurance segment. The contribution from investment income was slightly below last year’s first quarter result, largely due to timing differences as some equity dividends we typically would have received in the first quarter were instead accelerated and received in the fourth-quarter 2012. Despite this timing anomaly, we continue to experience annual dividend increases from the vast majority of our common stock holdings.”

Key Stats (on next page)…

Revenue increased 3.08% from $1.07 billion in the previous quarter. EPS decreased 29.73% from $1.11 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.35 to a profit $0.43. For the current year, the average estimate has moved up from a profit of $1.77 to a profit of $2.1 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]